HomeMy WebLinkAbout07-22-02 Community & Economic Development and Residential Neighborhoods Committee •
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The July 22, 2002 joint committee meeting of the Community and Economic Development
Committee and the Residential Neighborhoods Committee was called to order at 3:30 p.m. by
Community and Economic Development Chairperson, Council Member Karl King in the Council
Informal Meeting Room.
Persons in attendance included: Council Members Aranowski, Pfeifer, Kelly, King, Varner,
Coleman, Kirsits and White; Mayor Stephen Luecke, Senior Vice President of Memorial Health
System, Inc. Theodore J. Foti, the Chief Operating Officer of Memorial Health System, Inc.
Daniel Neufelder, John Byorni, Don Fozo, Don Inks, Jon Hunt, George Adler, Wayne Doolittle,
Council Attorney Kathleen Cekanski-Farrand, Terry Bland of the out) Virnti gribur , and
other unidentified members of the public.
Council Member King welcomed everyone to the joint committee meeting. He noted that the
committee which he chairs, the Community and Economic Development Committee and the
Residential Neighborhoods Committee, which is chaired by Council Member Charlotte Pfeifer, are
pleased to have the opportunity to have a presentation by representatives of Memorial Hospital on
their future medical services, expansion concepts for their campus, and an exchange of ideas
affecting our community. Mr. Daniel Neufelder, Chief Operating Officer and Mr. Theodore J.
Foti, Senior Vice President of Memorial Health System,Inc. were then introduced.
Mr. Neufelder thanked the Council Members for the opportunity to meet and discuss their plans
and ideas, and to have input on future developments. He noted that Memorial has developed a
model what Memorial is about and what they are trying to accomplish. Over 700 persons had
input into the model. By the year 2010 Memorial would like to have this community as the
"healthiest community in the nation". Smoking and obesity are the biggest obstacles identified in
reaching this goal.
Mr. Neufelder than briefly summarized Memorial's "Six Pillars of Excellence" and utilized
information shown on an overhead projector to supplement his presentation.
PILLAR # 1 - COMMUNITY: Memorial tithes back to the community approximately 10%
or roughly$3 million dollars. It works closely with 42 community partners in providing a variety
of support systems and services.
PILLAR # 2 - WORLD CLASS SERVICE: Memorial iS striving to provide the best service
to each person. It was noted that almost every resident of South Bend either has a relative or friend
who works at there. Memorial has been recognized in the areas of cardiology and orthopedics as
the best in these areas for a hospital of their size, ranking in the top 100.
PILLAR # 3 -QUALITY: Memorial is ranked within the top 5% in the United States for
patient satisfaction. Memorial tracks patient satisfaction on a regular basis.
PILLAR # 4 - PEOPLE: Memorial does not have enough nurses, this is both a local and
national problem. Vacancy rates at Memorial average 5% with the national average being 10%.
The average starting wage for a non-technical position is $19,200 and with benefits is $24,600.
The average starting wage for technical positions is $35,000 and with benefits is $45,000.
Memorial has 3,050 employees with an annual payroll of$150 million.
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Joint Meeting of the Community and Economic Development Committee and the Residential Neighborhoods Committee
July 22, 2002
Page 2
PILLAR # 5 - FINANCIAL: Memorial believes that it must be "strong, stable and secure"
financially. Annual revenue is approximately $300 million with approximately one-half of that
amount for personnel.Memorial's bond rating is AA-.
PILLAR # 6 - GROWTH: Memorial believes that it has many opportunities ahead. Heart
and vascular services must be expanded. There will be a 40% increase in demand due to aging of
the population.
Mr. Foti then continued the presentation. He noted that Memorial has a total of approximately
3,800 employees in its campus which is composed of 38 buildings. He noted that the South Bend
community has been fortunate to receive medical services from two hospitals for well over a
century. He then noted that South Bend will experience a serious increase in people over 65 years
of age. South Bend will have the 2d highest concentration of persons 65 years and older in the
State of Indiana by the year 2004. The percentage in this area will increase from 13% of its
population to 15% by the year 2004. As a result,capacity at the hospital will be a concern.
A series of overheads were then briefly summarized. Such information focused on "Payor Mix
Memorial vs. Payor Mix SJMC"noting that the potential impact by the year 2006 when St. Joseph
will not be in South Bend. Reimbursement from Medicare on the $1.00 is $0.37 and
reimbursement from Medicaid on the $1.00 is $0.35. Mr. Foti then reviewed the "Payor Mix
Trends"which indicate that a significant number of individuals who currently go to St. Joe will not
go there once their move is completed. He noted that this presents a significant challenge, but
"they will make it happen"so that services can be provided.
Dr. Varner inquired why the client base will not follow St. Joe when they relocate outside of the
city limits. Mr. Foti stated that their conclusions are "based on access to services". Mr. Foti also
noted that physicians will be challenged by questioning which hospital in which to practice since
their overhead would significantly increase due to the increased distance between the two hospitals
which will be in effect.
Council Member Pfeifer inquired whether surveys were conducted addressing people of color and
the growing Latino community in light of their faith and family affiliations with regard to a
religious affiliated institution like St. Joe, in addition to where the persons live.
Mr. Foti stated that no specific surveys of that nature were conducted, however their data shows
that the "access to services" or the "closest to services" appears to be a predominant factor. He
also noted that many persons use the services of the emergency room as their medical service, and
that many of these persons do not have insurance.
Mr. Neufelder noted that Medicaid users primarily come from South Bend's inner city, and the
west, southwest, and the southeast portions of the city. He also noted that physicians believe that
based on the projections that Memorial will not have enough beds.
Mr. Foti stated that 80% of Memorial has semi-private rooms, with the projections indicating a
need for an increase in not only these rooms but also private rooms.
Mr. Foti stated that 17% of the residents of St. Joseph County are on Medicaid. Since Memorial is
a 501C3 not-for-profit corporation it must be concerned about its overall viability. The bad debt
associated with residents from the City of South Bend is increasing:
Joint Meeting of the Community and Economic Development Committee and the Residential Neighborhoods Committee
July 22, 2002
Page 3
$7.4 million in 2001
$8.3 million projected in 2002
while bad debt recovery for resident form the City of South Bend is decreasing:
$1.3 million in 2000
$1.3 million in 2001
$1.2 million projected in 2002
Memorial's commitment to charitable activities was $3.1 million in 2001 and will be $3.4 million
in 2002. Memorial is fortunate to have between 30-35 new physicians each year. Mr. Foti noted
that it is easy to recruit new doctors to Memorial, with factors of the standard of living and cost of
living coming into play.
Mr. Foti then reviewed IN-Patients by locations:
48% South Bend
10% Mishawaka
7% Granger
12% Michigan
23.5% Other Indiana Communities
He noted that Memorial anticipates growth from residents in Michigan to continue. Granger has
approximately 30,000 residents and is significantly younger than the residents of South Bend. As
a result the Granger residents do not have the same demand for medical services.
52%of persons going to the emergency room are admitted. He noted that in year 2001 there were
39,002 persons treated in their emergency room. In year 2002, Memorial's emergency room has
experienced an increase of 13%and the total number of persons treated this year could top 45,000.
Council Member King questioned why the number of out-patient procedures are going down. Mr.
Foti noted that 58 physicians have joined together in a Dugdale location facility where many of the
out-patient procedures are performed.
Mr. Foti then showed a map depicting Memorial's master plan. He stated that$180 million comes
into St. Joseph County by Memorial. $350 million comes into St. Joseph County by the
University of Notre Dame.
Mr. Foti then focused on accessibility to Memorial and the various discussions with the city
addressing traffic patterns. Future developments include possible additions to the hospital so that
beds are increased, but there must be a"flow"for this to be efficient. Expansion to the north and
to the east are possible. Developments may also include an office building and the demolition of
the north parking garage and the building of a new garage at another location. Concerns over set
backs and large multi-story buildings near residential areas have also been discussed.
In response to a question from Council Member Pfeifer, Mr. Foti noted that their are waiting lists
at IUSB, Ivy Tech, etc for those wishing to pursue a career in nursing.
Mr. Neufelder noted that they do not want to go into neighborhoods and park areas, and that
discussions have continued since helicopter access to Memorial has begun. He stressed the need
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Joint Meeting of the Community and Economic Development Committee and the Residential Neighborhoods Committee
July 22, 2002
Page 4
for creative solutions.
Council Member Aranowski suggested seeking continued input from the neighborhoods before
items are scheduled for hearing before the various zoning agencies.
Mr. Neufelder thanked the Common Council for the opportunity to meet. He stated that Memorial
appreciates the efforts of the Council since "you govern our community". He concluded his
remarks by noting that it is important for Memorial to stay in South Bend and to meet the needs of
South Bend.
On behalf of the Council, Council Member King thanked Mr. Neufelder and Mr. Foti for their
presentation and urged them to keep the Council informed for future developments.
There being no further business to come before the joint meeting of the Community and Economic
Development Committee and the Residential Neighborhoods Committee, Council Member King
adjourned the meeting at 4:30 p.m.
Respectfully submitted,
Council Member Karl King, Chairperson
Community and Economic Development Committee
Council Member Charlotte Pfeifer, Chairperson
Residential Neighborhoods Committee
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